Investors bailed out of sterling and stock markets in Europe and Asia on Monday, seeking shelter in gold and the Japanese yen as uncertainty over the terms of Britain's divorce from the European Union undermined appetite for risky assets. The dollar rose, except against the yen, rebounding after suffering its worst week since November when it was hit by a lack of clarity over the policies of U.S. President-elect Donald Trump, whose inauguration is on Friday. "(The movement) shows that people are looking ahead this week with Trump's inauguration and discussions on Brexit.
FRANKFURT/BERLIN (Reuters) - U.S President-elect Donald Trump warned German car companies he would impose a border tax of 35 percent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers' shares. In an interview with German newspaper Bild, published on Monday, Trump criticized German carmakers such as BMW , Daimler and Volkswagen for failing to produce more cars on U.S. soil. You can build cars for the United States, but for every car that comes to the USA, you will pay 35 percent tax," Trump said in remarks translated into German.
A trade war between the United States and China and a strengthening dollar are among the biggest threats to a brightening global economic outlook, according to leading economists at the World Economic Forum in Davos. As political leaders, businessmen and bankers converge on the resort in the Swiss Alps this week, they can draw hope from a more benign economic picture and a rally in global stock markets on expectations of major stimulus under a new U.S. administration led by Donald Trump. The backdrop is brighter than it was a year ago, when concerns about a rapid economic slowdown in China led to what Credit Suisse CEO Tidjane Thiam described at the time as "the worst start to any year on record in financial markets ever".